Trump turns to tower's commercial space

Donald Trump speaks to the media at the Doral Golf Resort & Spa, which he bought in March for $150 million. (Mike Stocker/Tribune Newspapers)

Declaring that things are getting better in Chicago, Donald Trump is moving forward to fill the empty commercial portions of his Trump International Hotel and Tower.

Celebrity hairstylist Anthony Cristiano is shooting for a mid-July opening of a 3,400-square-foot salon on the building's mezzanine level.

In August, a crew will begin a 1,100-square-foot expansion of the 2,800-square-foot Rebar lounge, adding 50 seats and space for more private events.

Meanwhile, the plan has changed for the 55,000-square-foot commercial space that runs along the river that was expected to be filled with boutiques and high end retailers. The higher level is now being marketed as office space; the company is meeting with doctors' groups. Trump still hopes to lease the lower level to retailers.

"I think things are getting better in Chicago," he added.

He estimated that more than 75 percent the building's 486 condominiums have been sold; Chicago Bulls star Derrick Rose is among the recent buyers.

The market for Trump's 339 hotel-condo units, aimed at investors, has ground to a halt and less than half the units are sold, but the residences continue to attract buyers, said Gail Lissner, a vice president at Appraisal Research Counselors. Of the 486 units, 347 sales have closed. "The building is very well regarded in the market. The retail space is a lot more difficult due to the amount of space he has and the visibility."

Trump said he feels no urgency to start cutting prices on the condos. The 89th floor penthouse, a raw space, was recently listed for $32 million, making it the most expensive Chicago residence in the local multiple listing service.

That patience is the result of a deal Trump made earlier this year. In March, he paid $48 million, according to a person close to the deal, to buy debt with a face value of $130 million held by Fortress Investment Group and other junior creditors. "We are very solid financially," Trump said. "A building like this can never happen again."

For Cristiano, a Chicago native who got his start at Vidal Sassoon in Chicago and whose family is here, the salon is his first outpost and could be the first of many collaborations with Trump.

"We're hopeful that we can grow together," Cristiano said. The black and white salon, with floor-to-ceiling windows overlooking the river, will offer manicures, pedicures and haircuts, priced at $85 to $200.A haircut from him costs $350.

"We're friendly," he said. "I didn't want to make us so exclusive that no one could afford us."

Cristiano will split his time between Los Angeles, New York and Chicago.